Contract Vendee's a.k.a. the paper swap (anyone familar with these?)

[Omarwali Jones]

Anybody know anything about contract vendee's? a.k.a. 'the paper swap'. I usually take notes and do research at night, and any questions I have I inquire with my father the next day. Lurking the forums hear I herd different things about obtaining, and then selling a property with no money down to and end user. Which made me remember a story my father told me a while back. about how he pretty much did this. When he first got into the game a long time ago. Needless to stay 5 law school grads, and a disgruntled family didn't like the idea that a 'Joe whoever, from Harlem turned real estate agent might be smarter than them. So he walked away with some money but not as much as he should've. So he 'licked his wounds' that day. He also told me a story about another 'Zeus level' agent lol here in NYC Philip Pilevsky. Who now teaches from time to time at NYU who did the same thing once upon a time. Except he got away with it and made about 3mil plus his brokers commission! The state did try and sue him for 350k in taxes though....still. Here's the pdf linking to his famous court case. My father printed it out for me. Thought I'd share it for those who'd like to see it.

www.nysdta.org/Determinations/813845.DET.pdf

[Omarwali Jones]

Originally posted by Will Barnard:

OK, so it is right on the first line and somehow I missed it. Your question was, have we heard of such a thing? The answer is yes but it can refer to two things.
mainly, it refers to a simultaneous closing in which you lock up a property via purchase contract with a seller (seller being party "A", you being party "B" and then you find a buyer who is party "C". The "paper swap takes place in that your end buyer funds your front end transaction A-B, then simultaneously, the B-C transaction is completed using the very same funds. Party B keeps the difference between the purchase amount of A-B and the sell amount between B-C.

It also refers to land contracts which are seller carried/originated loans.

Ah I see, thanks. I've never herd of the land thing care to elaborate?